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Is the impact of public investment neutral across the regional income distribution?: evidence from Mexico

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This article investigates the contribution of public investment to the reduction of regional inequalities, with a specific application to Mexico. We examine the impact of public investment according to the position of each region in the conditional distribution of regional income by using quantile regression as an empirical technique. The results confirm the hypothesis that regional inequalities can indeed be attributed to the regional distribution of public investment; the observed pattern shows that public investment mainly helped to reduce regional inequalities among the richest regions.